Orvana extends option on Butte Highlands

In an agreement with the property owners, Orvana Minerals (ORV-T) has extended by four years its purchase option on the Butte Highlands gold project in Montana.

The company can acquire the title to the property at the originally agreed price, up to the end of October 2002.

However, as part of the negotiated agreement, Orvana must make annual payments of $50,000 and 25,000 shares on or before Nov. 1 of each year through to 2001. The company can buy the 17-sq.-km property, situated 25 km south of the city of Butte, for $1.7 million, which does not include annual payments.

If the value of Orvana’s shares exceeds $5 over 30 consecutive trading days before the end of the option period, the company must complete the purchase at the originally agreed price.

The property contains an indicated and inferred resource of 575,000 oz. (totaling 1.9 million tons of 0.30 oz. gold per ton). The extension to the purchase agreement allows Orvana the chance to test four additional targets on the property and allow underground access into the main Nevin Hill deposit. The company is negotiating possible joint-venture options for the property.